Japan Credit Rating Agency, Ltd. has affirmed African Export-Import Bank’s A-issuer credit rating with a stable outlook.
This affirmation is a split from the rating of Fitch and Moody’s, which downgraded the African lender recently.
According to a statement from the bank, the rating reflected JCR’s assessment of Afreximbank’s strong strategic positioning, robust risk management framework, consistent profitability, prudent liquidity policies and resilient capital base. JCR also noted the bank’s important role in supporting trade finance and economic development across Africa and the Caribbean.
JCR added that it expects Afreximbank’s rating to remain stable over the next 12 to 18 months, despite external macroeconomic challenges and potential pressures in its operating environment.
Reacting to the announcement, Afreximbank’s Senior Executive Vice President, Mr. Denys Denya, said the affirmation reinforces the bank’s credibility in global markets and highlights its systemic importance to Africa.
“JCR’s rating underscores our strong fundamentals and prudent risk management practices. It strengthens our ability to diversify our funding sources, including tapping into Japan’s capital markets, to further advance our mandate of promoting and financing intra- and extra-African trade,” he said.
Denya reaffirmed Afreximbank’s commitment to its member states, partners and clients, noting that its consistent delivery, even in challenging times, has been a key driver of its strong credit standing.
“This rating is a testament to the Bank’s resilience and strategic focus, enabling us to mobilise resources to drive trade and development in Africa and the Caribbean,” he added.
Fitch downgraded Afreximbank’s credit rating to one notch above junk on June 4, with a negative outlook, effectively another downgrade warning.
About four weeks later, Moody’s also slashed its rating on Afreximbank, citing weaker-than-expected asset performance and warning that its access to funding sources was shrinking. Moody’s downgraded the bank’s rating from Baa1 to Baa2, two notches above a sub-investment grade or “junk” rating, and changed its outlook from negative to stable.
